By: Tomas Ronolski - AllPennyStocks.com News

Friday, May 16, 2014

Unless you’re into earnings reports, news on Friday was scant. Luckily, companies are still piling on to the marijuana bandwagon, looking to establish a presence in the nascent industry and build higher valuations pertaining to potential. Merger news in the pot business was exactly the shot in the arm that shares of Brazil Interactive Media, Inc. (OTCQB:BIMI) needed, with a new deal catapulting the stock price upward more than 55 percent to levels not seen since early in October. At its core, Brazil Interactive Media is a Miami-based holding company and parent of Brazil Interactive Media Participações Ltda., which through its wholly-owned subsidiary, delivers interactive programming for the Brazilian marketplace.

The company also is the parent company to Cannamerica Corp., a Delaware company formed in March as Brazil Interactive looks to penetrate the rapidly growing marijuana business in America. On Friday, the company made its first real move with Cannamerica, one that will shift the overall appearance of Brazil Interactive. A deal has been penned for Cannamerica to acquire all of the issued and outstanding shares of Denver, Colorado-based Hollister & Blacksmith Inc., a firm doing business as American Cannabis Consulting.

American Cannabis Consulting owns and operates three businesses, its namesake business, Cube Root Inc. and The Trade Winds Inc., offering fully-integrated products and services to the regulated cannabis industry. These include advisory and management services, manufacturing and sales of products and supply chain management solutions.

Per an 8-K filing with the SEC, the Merger Agreement provides that, upon the consummation of the transactions contemplated thereby, (i) each share common stock of American Cannabis Consulting will be exchanged for shares of BIMI based on a ratio of 3,171.0628 to one and (ii) each share of common stock of Cannamerica will be converted into and exchanged for one share of common stock of American Cannabis Consulting.

Upon the closing of the transaction, which is expected by the end of the month (or either party can cancel the agreement), Brazil Interactive Media will change its name to American Cannabis Company, Inc. Further, Brazil Interactive will be divesting its Brazilian media operations.

American Cannabis Consulting’s Corey Hollister will become the new CEO and a board member of American Cannabis Company. “With the considerable interest in our services, our on-going successes in procuring legalized marijuana licenses for several clients, our current outstanding license applications, and our fast-growing pipeline of potential new contracts, we believe we are optimally positioned to respond to the rapid dynamic changes in both the domestic and international marketplace, and assist our clients successfully navigate through them,” Hollister said in a prepared statement on Friday announcing the merger.

In connection with the merger, Brazil Minerals closed a new round of financing in the amount of $395,000 led by Dutchess Opportunity Fund II LP. The Financing was structured by offering investors shares of BIMI at $0.08 each, a far cry below the 62.5-cent closing price of the stock on Thursday. Investors were more jazzed about the company’s focus going exclusively to the legal marijuana business than the 10-percent stock dilution, with shares closing trading at 99 cents on Friday.

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